Smith Barney buy boosts Morgan Stanley earnings

Morgan Stanley says it earned $617 million during the last three months of 2009 as its investment banking operations profited from its Smith Barney joint venture.
FEB 22, 2010
Morgan Stanley says it earned $617 million during the last three months of 2009 as its investment banking operations profited from its Smith Barney joint venture. Morgan Stanley said Wednesday it gained 29 cents a share on $6.8 billion in revenue. That was less than analysts' expectations of 36 cents on $7.8 billion in revenue, according to Thomson Reuters. But investors appeared pleased by the results, sending the company's stock up in pre-opening trading. Morgan Stanley said its revenue was hurt by an accounting charge resulting from the continuing improvement of credit markets. However, the bank said the Morgan Stanley Smith Barney joint venture more than doubled the revenues from its global wealth management operations to $3.1 billion. The bank reported its 2009 compensation expenses, including salaries and bonuses, rose 30 percent to $14.4 billion from $11.1 billion in 2008.

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